India has agreed to set-up a dedicated economic zone and to build a pharmaceutical hub in Sri Lanka as part of bilateral ties to strengthen economic trade between the South Asian neighbours.

The visiting Indian Commerce, Industry and Textile minister Ananda Sharma told reporters in Colombo, that the manufacturing investment zone, is due to come up in Sri Lanka’s eastern seaport district of in Trincomalee.

A bilateral taskforce is being formed to begin work on the zone, with the Indian delegation being named shortly.